Trust · Calculator

Trust distribution tax calculator 2026-27

Reconcile trust-law income with tax net income, then estimate each beneficiary's tax share using exact franking credits, capital gains and the applicable beneficiary settings.

Non-streamed allocationExact franking creditsDivision 6AA & s99A
01 —INPUTS

Sets the individual, minor and trustee tax rates used below.

Trust Income

Trust-law or accounting income available for beneficiary entitlements

Section 95 net income, including franking-credit gross-up and net capital gain

Cash amount included in tax net income

Enter the exact credit from the dividend or trust statement

Amount included in trust tax net income after any trust-level discount

Estimator scope
Non-streamed proportional allocation only. Use the trust accounts and tax statement; specific entitlement to capital gains or franked distributions needs a separate calculation.
Beneficiaries

Salary, wages and other income before this trust share

Salary, wages and other income before this trust share

02 —RESULTS
Awaiting input

Enter trust income and beneficiary details to see the tax breakdown

Edit inputs ↑

Business calculators: Company tax calculator, Franking credits calculator, BAS calculator, Division 7A calculator, Sole trader tax calculator

How trust distribution tax works

A trust's income under the deed and trust law can differ from its tax net income under section 95. Under the proportionate approach, a beneficiary's percentage share of trust-law income is applied to tax net income, so a $40,000 entitlement does not necessarily mean $40,000 of taxable trust income.

This calculator models that non-streamed proportional case. It does not model a beneficiary's specific entitlement to a capital gain or franked distribution, trust losses, non-residents, deceased estates, excepted income of minors, family trust distribution tax, personal capital losses, or small-business CGT concessions.

Tax treatment by beneficiary type

Adult individuals

The taxable trust share is added to the beneficiary's other taxable income. The estimate applies resident rates, LITO and the Medicare low-income rules, then subtracts the entered franking-credit share. Family Medicare thresholds, Medicare exemptions and integrity-rule eligibility are not modelled.

Minors (under 18)

The calculator treats the trust share as the minor's only eligible income under Division 6AA. It does not apply LITO. Excepted persons and excepted income—including qualifying employment, disability and deceased-estate income—must be assessed separately.

Companies

Select 25% only if the company satisfies both base-rate-entity tests: aggregated turnover below $50 million and no more than 80% base-rate-entity passive income. Otherwise use 30%. Trust distributions traceable to passive income can affect that test, so 30% is the safer default.

FAQ
How are trust distributions taxed in Australia?
For a resident beneficiary who is presently entitled, a share of the trust's tax net income is generally assessed to that beneficiary. Under the proportionate approach, the tax share is based on the beneficiary's share of trust-law income, so the cash entitlement and taxable amount can differ. Special rules apply to capital gains and franked distributions.
What happens if trust income is not distributed by 30 June?
Where no beneficiary is presently entitled, the corresponding share of tax net income may be assessed to the trustee under section 99A. The Income Tax Rates Act sets the section 99A rate at the top marginal rate of 45%, and the trustee is also liable for the 2% Medicare levy on income assessed under section 99A, giving an effective 47%. A trust-discounted capital gain is grossed up for this assessment, and an excess franking offset is not refundable under section 99A.
How are trust distributions to minors taxed?
Eligible income of a minor under Division 6AA is nil up to $416. From $417 to $1,307, the tax is 66c for each $1 of the excess over $416; above $1,307 the entire amount is taxed at 45%. Medicare may also apply subject to its low-income rules. Excepted persons and excepted income, including qualifying deceased-estate income, require different treatment and are outside this calculator.
Can a trust stream capital gains to specific beneficiaries?
A beneficiary may be specifically entitled to a capital gain where the deed and trustee records support it. The tax calculation then uses the specific-entitlement rules rather than a simple proportional allocation. This calculator models only a non-streamed proportional allocation. It assumes an eligible individual can reapply the trust's discount and that a company cannot, so a trust-discounted gain is grossed up for the company.
How do franking credits work with trust distributions?
A beneficiary's assessable amount can include both their share of the franked distribution and the attached franking-credit gross-up, with a potential tax offset for that credit. Eligibility is subject to integrity rules such as the holding-period rule. Enter the exact franking credit from the statement: it should not be inferred from the cash dividend. Excess credits may be refundable to an eligible individual, but not to a company or a trustee assessed under sections 98 or 99A.
What is Section 100A and how does it affect trust distributions?
Section 100A can apply to a reimbursement agreement where a beneficiary is made presently entitled but another person receives a benefit under the arrangement. If it applies, the affected amount may be assessed to the trustee under section 99A at 47% including the Medicare levy. Whether the ordinary family or commercial dealing exception applies depends on the full facts.

Related calculators

Franking Credits Calculator Dividend imputation and tax refunds Employee Share Scheme Calculator Division 83A: taxed-upfront, deferral, and start-up concession with $1,000 reduction and 30-day rule Investment Bond Calculator Tax-paid bonds and the 10-year rule ATO Interest Calculator GIC on overdue tax debts Sole Trader Tax Calculator ABN tax, deductions, GST and PAYG instalments ETF Distribution Tax Tax breakdown on ETF distributions

Tax Accuracy & Sources

Reviewed: 17 July 2026 · Tax year: 2026-27

This calculator is a non-streamed proportional estimate for Australian resident beneficiaries. It separates trust-law distributable income from section 95 tax net income, uses the exact franking credit entered, and models common adult, eligible-minor, company and section 99A outcomes. It does not determine whether a beneficiary is presently or specifically entitled, whether a company qualifies as a base rate entity, or whether franking-credit and anti-avoidance integrity rules are satisfied. Obtain advice before making or documenting a trustee resolution.